In a move that is reshaping the narrative of African-led energy development, Oando PLC has executed a production sharing contract for Block KON-13 in Angola's onshore Kwanza Basin, formally stepping into one of the continent's most productive oil-producing nations and advancing its ambition to build a truly pan-African upstream portfolio.
Oando Energy Resources, the upstream arm of the group, holds a 45% participating interest and assumes the operator role, with partners Effimax Energy at 30%, Sonangol Exploração e Produção at 15%, and Walcot Ltd at 10%.
What makes this deal historically significant goes beyond the numbers. For the first time, an indigenous Nigerian firm is taking an operational lead in Angola's upstream sector, a signal of a broader shift toward African-led capital, expertise, and ambition in shaping the continent's energy economy.
Block KON-13 sits in the prolific Kwanza Onshore Basin, an area with considerable exploration potential in both pre-salt and post-salt formations, with estimated prospective resources ranging from 770 million to 1.1 billion barrels of oil. Two exploration wells have already been drilled on the block to a target depth of 3,000 metres, with oil and gas shows recorded at multiple depth intervals giving Oando meaningful subsurface intelligence before committing to new drilling.
This signing did not happen overnight. The path from early interest to a signed production sharing contract took more than a decade, navigating setbacks, restructurings, and missed opportunities before the KON-13 bid finally came through in 2024. The tender was made public in May 2024, with bidding held in September of the same year. Oando's formal award announcement came on January 22, 2025, with the PSC signing completing the process.
The signing represents Oando's first operated international upstream joint venture, underscoring its ambition to scale both production and exploration activities across key African energy markets.
Group Chief Executive Wale Tinubu framed the deal as both a commercial and continental milestone. He stated that the PSC advances the company's geographic reach across Africa and reaffirms its commitment to excellence and execution, while bringing proven technical expertise to the asset with a clear mandate to create value for partners and support Angola's energy ambitions.
The timing is no accident. The KON-13 agreement arrives at a pivotal moment for Angola's oil sector, with the country's production projected to climb to approximately 1.14 million barrels per day in 2026, reversing years of output decline. Angola is actively courting new investment to reinvigorate its upstream space, and deals like KON-13 led by an African independent operator represent exactly the kind of diversified capital inflow the government has been seeking.
With Block KON-13 now in its portfolio, Oando is positioned to leverage exploration opportunities within the Kwanza Basin while supporting regional energy security and long-term production growth.
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